Japan Airlines (JAL) has announced that its planned new domestic subsidiary carrier, JALEXPRESS, will be formally incorporated from 1 April and begin operations in 1998.
The new 100% JAL-owned airline is being established to compete with Japan's proliferating number of planned low-cost start-up carriers, following partial liberalisation of the air-transport industry. The airline will have an initial capitalisation of ´5.8 billion ($48 million).
JAL EXPRESS will initially use two Boeing 737-400s and operate its own domestic network, as well as some low-demand routes.
To keep costs low, foreign cockpit crew and short-term contract cabin attendants will initially be hired. Airport handling, sales and management will go to JAL. Maintenance support will be provided by JAL and its Okinawa-based subsidiary, Japan Transocean Air.
Source: Flight International
